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AlexFokin [52]
3 years ago
8

Given the following information, calculate the capitalization rate for the following apartment complex:

Business
1 answer:
RSB [31]3 years ago
8 0

Answer:

Collections per month  = 11,250

Monthly rate = 0.0066

Annual rate = 8.1%

Explanation:

Calculations of capitalization rate for the following apartment complex are as follows:

Collections per month is calculated as = 1000*15*(1 - 0.10-0.05-0.10) = 11,250

Monthly rate is calculated as= 11,250/1,710,000 = 0.0066

Annual rate is calcuated as = (1 + 0.0066)^12 - 1 = 8.1%.

Hence ,Collections per month are 11,250  ,Monthly rate is 0.0066  and annual rate is 8.1%

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